Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following table shows the marginal benefit per year (in dollars) to all the households in a small community from the hiring of additional firefighters.
The following table shows the marginal benefit per year (in dollars) to all the households in a small community from the hiring of additional firefighters. The table also shows the marginal cost per year (in dollars) of hiring additional firefighters. Number of Firefighters Marginal Benefit for the Community Marginal Cost 1,000,000 34,000 2 500,000 35,000 300,000 36,000 4 100,000 37,000 70,000 38,000 50,000 39,000 40,000 40,000 30,000 41,000 20,000 42,000 10 10,000 44,000 What is the optimal amount of this public good (in terms of the number of firefighters)? Optimal amount = firefighters
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started